Essay About Bitcoin Software System And Previous Attempts

Data Cleansing – Crypto Currencies
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Crypto CurrenciesMoney has changed a lot over years, there were lots of opportunities for people to pay for something not in cash. First there were credit cards, these were not so famous among people at the first years, then there people could use checks, to buy what the want. The increasing use of checks in the 70’s led to the development of an electronic payment network to replace the ever growing burden of maintaining paper records of payments. In the 20th century there was a „digital revolution”, which means that in this era money increasingly become more virtual, and less physical. Nowdays only 8% of the world’s currency exists in a physical cash form. As the Internet started to spread among households, multiple digital currencies came and went. Government regulation caused currencies like E-gold, Goldmoney and Liberty Reserve to cease progress. There had been previous attempts at creating online currencies with ledgers secured by encryption. Two examples of these were B-Money and Bit Gold, which were formulated but never fully developed. Then came 2009 when an open source software for a digital currency was introduced. It was created by by pseudonymous developer Satoshi Nakamoto.Bitcoin is the first virtual currency to not have a central point of failure. Most importantly, it is resistant to government force. Its entire system is distributed and thus impossible to pinpoint and shutdown. As it was designed, a distributed network of voluntary users provides the service to maintain the bitcoin software system. This currenc allows you to send a pament to anyone in the world online, without using any bank, company, or otherwise trusted third party. Sending bitcoin basically works like an email, except that a bitcoin’s unit of value cannot be duplicated. Only a specified number of Bitcoin units will ever be in existence, much unlike for exapmle America’s money supply, which has basically doubled in just the past decade. This caused the same with the goods and service sas well. After it was released, the first bitcoind had nearly zero value because at this time all the users were cryptography enthusiast and computer nerds playing around with some new piece of software. By May 2010 Bitcoin was beginning to trade in the real world. There was a case, when somebody wanted 2 pizzas, and wanted to pay in Bitcoin (10,000 bitcoin) for it. By December 2010, the value of Bitcoin increased, and the 10,000 bitcoin he payed for 2 pizza was worth 10 million dollar. This is how fast bitcoin has increased in value or rather, how fast the increase in its number of users and recognition has been. Bitcoin ATMs started to apper worldwide allowing the sale of bitcoins for cash, and cash into bitcoins at physical locations. These machines are allowing users to get cash out or make deposits to their accounts, because the speciality of these kind of ATMs is that they have scanners to read government-issued identification such as driver’s license or a passport to confirm users’ identities. The Bitcoin is just like the internet at the beginning. Few people used, people didn’t really believe in it and they didn’t know how does it works, or how to use it.